Yes bank mainstreaming development

1. YES BANK:MAINSTREAMING DEVELOPMENT
INTO INDIAN BANKING
By:
Shivam
Kumar(A1802011101)
Taruna
Gulati(A1802011080)
AMITY UNIVERSITY

2. ABOUT YES BANK
 YES BANK is a full service commercial bank that offers
Corporate Banking, Investment Banking, and Personal
Banking services across India.
 India’s new age private sector Bank, is a state-of-the-art
high quality, customer-centric, service-driven Bank
catering to the “Future Businesses of India”
 Promoter & Founder-Dr. Rana Kapoor and his top
management team

3.  India’s fourth largest private sector bank (by balance
sheet dated March 31, 2012).
 YES BANK has a widespread branch network of over
380 branches across 275 cities, with 650+ ATMs and
2 National Operating Centres in Mumbai and
Gurgaon.
 Vision of ‘Building the Best Quality Bank of the
World in India’by 2015.

4.  The sustained growth of YES BANK is based on
the key pillars of Growth, Trust, Technology,
Human Capital, Transparency & Responsible
Banking.
 YES BANK has a knowledge driven approach to
banking, and a superior customer experience for its
retail, corporate and emerging corporate banking
clients.

5. HISTORY
 Founded in November 2003 by Rana Kapur and Ashok
Kapur.
 Initial capital of $45 million
 Growth at dramatic pace
 In 2010:153 branches,3024 employees,a balance sheet
of $8.1 billion,net income of $ 303.7 million and return
on equity of 23.7%
 Yes bank focus on 4 pillars:
 Financial markets,investment banking,transaction
banking and corporate finance.

6. INDIAN BANKING SECTOR
 Post Independence – Fundamental Reforms in
Banking Sector.
 Banking Regulation Act 1949 – RBI to supervise
and regulate all banking activities.
 Nationalization of Banks – 1969 – 14 Largest
commercial banks were nationalized.
 Third Major Reform 1977 – Branch licensing Policy
–To Expand Reach to the masses.

7.  1985-1997 : Branch network grew by 16 % in Rural
areas.
 Post 1991 Crisis – Deregulation of Financial Sector.
 2009-10 Survey – India has 76 Commerical banks(27
public sector , 22 Pvt Banks, 27 Foreign Banks).
 Public sector banks holdings 75% of financial sectors
assets. SBI – Largest bank , 9034 Branches, 1/5 of total
loans in 2010. Yes Bank - 6th largest Pvt sector Bank.
Largest - ICICI

8. DEVELOPMENT BANKING AT YES BANK
Divided into four parts-:
 Agribusiness, Rural and Social Banking
 Microfinance
 Sustainable Investment Banking
 Responsible Banking

9. AGRIBUSINESS, RURAL AND MICROFINANCE
 Objective was to fulfill RBI’s PSL requirement.
 without fulfilling PSL target they can’t expand their
business.
 tie up with Kashmir Apiaries Export (KAE) and
Jain Irrigation System Limited.

10. MICROFINANCE
 In 2007 bank decided to reach microfinance client
directly.
 initiative called YES SAMPANN.
 joint venture with ACCION
 At the end of 2009, It operated 4 branches and had
4495 active borrowers

11. PROBLEMS FACED BY DEVELOPMENT TEAM
 every time when YES SAMPANN wanted to open a
new branch they are required to get approval from
RBI.

12. SUSTAINABLE INVESTMENT BANKING
 Internally SIB group was called as “S3IB”
 Offered services to business which were either “small,
social or sustainable”
 Targeted social driven companies in the field of
education, energy, healthcare etc.
 In 2009 Yes bank approached Greenko which were the
producer of small hydro ,solar and windpower assets in
India.
 Greenko was looking for $8 million in debt , Yes Bank
offered to raise $90 million through mix of equity and
debt to finance 400 MW of fresh capacity , four times
company goal.

13.  By 2014 Greenko expected to generate 1000 MW
of renewal energy.
 Yes bank became the sole underwriter of Greenko.

14. STRATEGY OF YES BANK
“Once they identify a particular area, then they set up
a specialized business unit to create a viable
business for the bank”

15. FINANCIAL INCLUSION PROGRAM
MONEY MOBILE SERVICE (YES- MMS)
 Partnership with Nokia and Obopay
 Mobile banking in 2009
 “200 million bank accounts in India and we have
500 million mobile users”
 Yes-MMS , the program consisted of Nokia Cell
phone with the prembedded application.
 When customer buy cell phone at nokia distributor
with the sim card and the distributor use to open a
YES Bank account.
 So there was cross selling of products.

16.  Obopay received the fee according to the service
 Nokia profit was customer generation
 Transaction limit for mobile banking was resticted to
$1000 per year

17. FINANCIAL INCLUSION PROGRAM
RURAL BANKING THROUGH BUSINESS
CORRESPONDENT (BC) MODEL
 Bank identified target villages within 30 km radius of existing
rural/semi urban branches.
 Recruited potential parties that could serve as BC for Bank
 Bank paid BC on commission Basis
 BC includes non profit organizations, Individual shop
owners etc
 BC work was identification of borrowers, processing and
verification of loans applications and loan recovery
 Also includes credit and non credit products such as
remittances,saving acounts,micro finance